Seiko Epson (6724) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue rose 6.9% year-over-year to ¥336.6B, driven by yen depreciation and strong printhead and printing solutions sales, despite mixed segment performance.

• Business profit increased 50.6% year-over-year to ¥23.4B, mainly from higher printing segment sales and favorable forex.

• Profit for the period attributable to owners was ¥19.1B, down 5.1% year-over-year, impacted by higher operating expenses and lower pre-tax profit.

• Revenue and profit exceeded internal plans due to robust printhead demand and revised promotion timing in office & home printing.

• Comprehensive income for the period was ¥49.2B, down from ¥55.0B a year ago.

Financial highlights

• Gross profit increased to ¥119.9B from ¥107.7B year-over-year.

• Operating profit rose to ¥22.5B from ¥19.7B year-over-year.

• Total assets grew to ¥1,474.7B, up ¥61.5B from March 2024.

• Net cash from operating activities was ¥35.3B, up from ¥27.3B year-over-year.

• Net profit attributable to owners was ¥19.1B, EPS at ¥57.78.

Outlook and guidance

• FY2024 revenue outlook raised to ¥1,370B (+4.3% YoY); business profit forecast at ¥85B (+31.3% YoY).

• Profit for the year expected at ¥54B (+2.6% YoY); EPS forecast at ¥162.83.

• Exchange rate assumptions revised to ¥151/USD and ¥163/EUR, supporting higher guidance.

• Outlook for printheads increased, while microdevices and robots outlook lowered due to weak demand.